Disadvantages Of Corporate Social Responsibility
Purpose of this essay is to discuss the corporate service responsibility and how it is affecting a business and the stakeholders of a business. Further, it will be discussed about many reasons why practicing CSR in a corporation is important and what are the advantages of CSR. Further, the disadvantages and the different views.
Corporate social responsibility is contributing in welfare …show more content…
A study performed by Kenexa High performance institute in 2015 has found that the CSR oriented companies have performed 19 times better Return on assets ratio than who are not practicing CSR (The Importance of Corporate Social Responsibility, 2016). In addition, companies who practice CSR has an improved level of employee satisfaction and a better customer satisfaction.
As a main advantage of following CSR practice it can be seen that the employees have a passion to work in a CSR oriented companies since they get what they expecting from the company. Studies show that a strong CSR oriented company could be more attractive to employees since it sounds ethical and giving the good things in to the society. Further, the employees likely to work in a company which is having a good …show more content…
As they say “if you play a drum when no one is around, can anyone hear you playing?” As in they believe even if you practice CSR and if no one sees it that it 'll be a practice of futility (Financier Worldwide, 2016).
As Milton Friedman says “when you practice CSR, it changes the objective of the company which is maximising profits and forgets what their shareholders expects” (SCHWARTZ and SAIIA, 2012)
As discussed above its company 's choice to go with CSR or not. Different managers and different directors think in different point of views. Even if the company is highly profit oriented, it still can follow up a CSR vision since they can win the customers.
Concluding, CSR stays way beyond the law. Which means even a company does legitimately legal it can be ethically wrong or not following CSR. But on the other hand if a company is CSR oriented it is following a good path as in a legal way.
I recommend a company to follow a CSR practice which in a way that it fits to the company. If it is a small company they can even start the process with their employees. And if it 's a major corporation it can start form somewhere